The CEO of the Japanese financial giant SBI Group, Yoshitaka Kitao, has confirmed Ripple’s intention to conduct an IPO and become a public company if it wins a lawsuit over the US Securities and Exchange Commission (SEC). SBI Group is one of the long-standing partners of Ripple, writes RBC Crypto.
For the first time, Ripple CEO Brad Garlinghouse announced plans to hold an IPO in January 2020 during a speech at an economic forum in Davos. In December of the same year, the regulator accused the company of illegally selling unregistered securities under the guise of tokens in the amount of $ 1.3 billion.
In April of this year, there were several positive factors, against the background of which the value of the XRP token was approaching the $ 2 mark. On April 7, the court opened the blockchain project access to documents for internal use by the SEC. The company expects to find evidence that the regulator has in the past referred to the XRP token as a currency, not a security.
Already on April 12, Garlinghouse and co-founder of the blockchain project, Chris Larsen, filed a motion to dismiss the SEC’s claim for their individual liability. According to the company’s representatives, the regulator was unable to prove the fact of deliberate violation of the law by its management. XRP is trading at $ 1.37 today, according to CoinGecko. In April, the token has risen in price by 150%.
“Token price may exceed $ 2”
Head of the analytical department AMarkets Artem Deev
Since the SEC was still unable to prove that Ripple’s management deliberately pursued policies that violated applicable law, everything could end quite peacefully, and the company will restore its reputation. There is no need to talk about victory yet, but it is possible that the Commission will adopt a document stating that there are no more claims against the company.
This will be an admission that the regulator did not see sufficient grounds for further proceedings, and the whole story could end there. Outwardly, Ripple’s position looks strong, and the Commission does not so much prove the company’s guilt as explains its claims and actions, that is, it takes a position on the defensive.
XRP looks interesting in the medium term. Currently, there are no reasons for a significant increase in the asset, but in the future, depending on the news, the token may grow over $ 2. At the same time, there are risks, since the token tends to grow or fall immediately by 20-40% per session, therefore it is not yet worth considering it as a reliable investment.
“We can see XRP at $ 6-7”
Head of data analysis department of CEX.IO Broker Yuri Mazur
The main factor in restoring Ripple’s reputation can be either a victory in a lawsuit with the SEC, or an amicable agreement with the SEC. Justice in the United States in such matters is rather unpredictable, so both positive and negative outcomes for XRP are equally likely. Ripple’s emerging plans to become a public company should be treated with healthy skepticism, since the plan itself assumes implementation only if a difficult-to-predict condition is met – the court wins against the SEC.
It is worth paying attention to Ripple, but the share of XRP in the investment portfolio should be inversely related to the risks for it – that is, with an increase in risks, the share should decrease, with a decrease in risks, it should increase. We believe that a win or an amicable agreement with the SEC can significantly heat up XRP quotes – with a moderate forecast, growth may be limited to $ 3.7, with a positive one, we can probably see $ 6-7.
“It is worth selling all XRP tokens”
CEO of Xena Financial Systems Anton Kravchenko
Initially, Ripple wanted to make an interbank blockchain, but then the initial fears that banks would not use a third-party platform were justified. Most of the tokens were concentrated in the hands of the founder, and the relatively high liquidity of the token made it possible to continue to fund PR and attract the interest of private investors, but Ripple’s reputation has already suffered greatly.
Since Ripple has attracted many private investors through active marketing and PR, and the project’s prospects are extremely dubious, the SEC began to check. Formally, the SEC believes that this is an issue of unregistered securities. Against this background, the news about a potential IPO certainly looks like a “last spurt” to be able to come out about those who decide to buy this token now. I have always believed and openly stated that Ripple has all the signs of a dubious project, which has been confirmed, so it is worth selling all the tokens of this project, if they are in the portfolio.
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